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Tax question from new driver

Discussion in 'Trucker Taxes and Truck Financing' started by Roadsong66, Jul 23, 2008.

Page 1 of 5
  1. Jul 23, 2008 #1
    Roadsong66

    Roadsong66 Bobtail Member

    10
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    Jul 16, 2008
    santa monica, ca
    0
    It is my understanding that driver's "enjoy" the benefit of being able to write off an extensive list of items every year. Food expense seems to be the biggest tax break.

    Not being very tax savvy myself, how do these write-offs translate into real dollars?

    Let me use a very rough example: I'm a new driver who earns 35k during the course of his first year, and without any deductions I would owe nothing to the IRS. Then, after going through my receipts, I find that I am able to claim $15,000 in itemized deductions for food, etc.

    1) Am I taxed on the difference between 35k and the 15k worth of deductions? i.e.; is my taxable income is based upon $20,000?

    2) If I claim 15k in deductions, how much of that can I expect to recoup from the IRS in real dollars?

    3) In the real world, what do you veteran driver's claim on average for your itemized deductions? How much do you get back?

    Thanks for any assistance you can offer.
     
    Roadsong66, Jul 23, 2008
    Roadsong66, Jul 23, 2008
    #1
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  3. Jul 23, 2008 #2
    Baack

    Baack Road Train Member

    15,294
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    May 24, 2007
    Wisconsin
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    Good questions
    Wow thats almost $300.00 a week for food????
     
    Baack, Jul 23, 2008
    Baack, Jul 23, 2008
    #2
  4. Jul 23, 2008 #3
    Roadsong66

    Roadsong66 Bobtail Member

    10
    0
    Jul 16, 2008
    santa monica, ca
    0
    The 15k deduction was not just for food. It included other deductible items such as basic tools, cooler, laptop, satellite radio, laundry, etc, etc. etc.

    It is my understanding that living in a major metro area may qualify me for a $52 dollar per day food per diem. However, the standard deduction, which is safer to claim without flagging an audit is, I believe $34 per day.

    What I do not understand is how I can forecast the net benefits of the tax deductions versus the out of pocket costs of driving over the next year.
     
    Roadsong66, Jul 23, 2008
    Roadsong66, Jul 23, 2008
    #3
  5. Jul 23, 2008 #4
    Baack

    Baack Road Train Member

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    Yes $52.00 every day your on the road
    You can deduct 75% of that total
    Next year I think it goes to 85%
     
    Baack, Jul 23, 2008
    Baack, Jul 23, 2008
    #4
  7. Jul 23, 2008 #5
    Jacstress

    Jacstress <strong>18wheeldumptruckers hottie </strong>

    28
    9
    Jul 16, 2008
    Sullivan, Ohio
    0


    As a tax advisor I can help you with this, but remember this is hypothetical.

    If the only income coming in is the 35k, then you would automatically subtract the amount for your standard deduction or your 15k in deductions. Then you subtract (for 2007) $3,400 times however many people are on the tax form. What's left is your taxable income. So this would mean $16,600 for a single person is taxable, or if it's you, a spouse & say 4 kids, you'd subtract $20,400 & have no tax liability.

    As for how much you'd get back, alot of that depends on the dependents again. You could get earned income credit, or chid tax credit, & a couple other things.

    Also, if you own a house or property, you can claim that.
    Hope this helps, but ask away. If you have more questions, please let me know. I miss tax season already.
     
    Jacstress, Jul 23, 2008
    Jacstress, Jul 23, 2008
    #5
    Roadsong66, EnglishMark, Baack and 1 other person Thank this.
  8. Jul 23, 2008 #6
    Roadsong66

    Roadsong66 Bobtail Member

    10
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    Jul 16, 2008
    santa monica, ca
    0
    Thanks Jactress, I'm starting to get a handle on this.
     
    Roadsong66, Jul 23, 2008
    Roadsong66, Jul 23, 2008
    #6
  9. Jul 23, 2008 #7
    Roadmedic

    Roadmedic Road Train Member

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    You might miss tax season, but I have them all year calling me. Business and late filers.
     
    Roadmedic, Jul 23, 2008
    Roadmedic, Jul 23, 2008
    #7
  10. Jul 23, 2008 #8
    Snowman&Fred

    Snowman&Fred Light Load Member

    275
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    Jul 3, 2008
    Des Moines, Iowa
    0
    Okay, I kinda understand the whole 'deduction' thing. Pretty much ANYTHING you can remotely use on the road or in your truck, you can claim as a 'business' expense....tools, work gloves, flashlights, etc. But how can you claim a laptop? I could see a TomTom or some GPS.

    I have also read that if you dont have a 'home address' and actually live out of your truck, you cannot claim per diem. I dont plan to do this, I will have a mailing address, however I wont hardly ever be there, but maybe 1-2x a month. This fact or fiction?
     
    Snowman&Fred, Jul 23, 2008
    Snowman&Fred, Jul 23, 2008
    #8
  11. Jul 23, 2008 #9
    Roadmedic

    Roadmedic Road Train Member

    18,951
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    Apr 4, 2007
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    Map quest use, weather checking on the internet. Software for log books. Email with company. Just to name a few.
     
    Roadmedic, Jul 23, 2008
    Roadmedic, Jul 23, 2008
    #9
  12. Jul 23, 2008 #10
    Ken Worth

    Ken Worth Medium Load Member

    639
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    Jun 29, 2008
    Great Plains
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    Can you claim the entire price of the laptop?
     
    Ken Worth, Jul 23, 2008
    Ken Worth, Jul 23, 2008
    #10
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